Martin's Research Working Papers: "Consumer Behavior in Markets of Durable Experience Goods", mimeo, New York University (in preparation for publication). Paper Abstract: Empirical evidence from the automobile industry suggests that cars are experience goods: consumers do not have complete information about some characteristics of cars, and can only learn about them after buying and trying them out. Experience would then explain the significant dispersion of customer loyalty among car brands. In this paper I propose a dynamic model to study markets for durable experience goods where trade in used goods is allowed and experience is idiosyncratic. In equilibrium, consumers who had a good experience decide to keep their durable good for some time, despite depreciation, because they do not want to face the risk of replacing the good with a new one of uncertain quality. An implication of this pattern of behavior is incomplete trade in secondary markets. Such lack of trade has been interpreted (in light of the adverse selection literature) as an indication of inefficiency. In contrast, as long as experience involves idiosyncratic tastes, this lack of trade is efficient in my model. An important extension that is considered is a model where brands differ in their ex-ante distribution of experience. In this model, I show that the brand with larger probability of good fit exhibits (a) higher loyalty, (b) smaller price declines, and (c) longer ownership spells. These results are consistent with evidence from the automobile industry in the US. "On the Obsolescence Decision in Competitive Durable Goods Markets", mimeo, New York University (in preparation for publication). "On Investment Incentives in a Regulated Network Industry", mimeo, New York University, current version April 2007. Other Papers: "Monopolistic Competition and the Volume of Trade: an Empirical Testing", mimeo, New York University (May 2000). "Real Exchange Rate in Peru: a Cointegration Analysis", mimeo, New York University (January 2000). Publications: "Impact of Contractual Arrangements involving Private Sector Participation in Infrastructure: the Case of Peru”, with Gonzalo Tamayo et al, Research Network Working Paper R-390, Inter-American Development Bank, 2000. (In Spanish). "The Peruvian External Debt", joint with Drago Kisic, in "Defensa y Desarrollo Nacional" CAEM 16, October 1996 (In Spanish). Last update: January 28, 2008.